June 23 (Reuters) – UK’s FTSE 100 dropped on Thursday after tepid commodity prices pulled down oil and mining majors, with investors reassessing the impact of recession on fuel demand in major economies.
The exporter-heavy index (.FTSE) fell 0.6%, but fared better than its European peers as a weakening pound boosted shares of global companies such as Unilever (ULVR.L).
Oil majors such as BP (BP.L) and Shell (SHEL.L) fell about 1% as crude prices continued to retreat as investors weighed the impact of interest rate hikes.
London-listed shares of global miners including Anglo American (AAL.L), Rio Tinto (RIO.L) and Glencore (GLEN.L) weakened as copper prices tumbled to a 16-month low.
“The fall in metals … that’s about worries over a slowdown in the global economy,” said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.
An S&P Global survey showed Britain’s economy is showing signs of stalling as rapid inflation hits new orders and businesses report levels of concern that normally signal a recession. read more
Another set showed the British government had to borrow a bigger-than-expected amount of 14 billion pounds ($17.14 billion) amid mounting inflation, debt interest costs. read more
“The borrowing figures show the impact of inflation, the fact that the UK economy has contracted, so there are fewer tax receipts. It’s another piece in the jigsaw,” added Streeter.
Shares of 888 (888.L) slipped 3% after the online gambling firm said it expects a drop in its half-year revenue. read more
Trainline (TRNT.L) fell 9.7% to the bottom of the FTSE mid-cap after the rail operator’s chief financial officer announced plans to step down.
Naked Wines (WINEW.L) tumbled almost 40% after the online wine seller said it intends to trade the business at or around break-even in 2022 amid growing uncertainty in the market.
(This story has been refiled to correct typo in paragraph 1)
Reporting by Boleslaw Lasocki in Gdansk; Editing by Shailesh Kuber and Sherry Jacob-Phillips
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